{"id":35429,"date":"2021-12-15T18:01:52","date_gmt":"2021-12-15T12:31:52","guid":{"rendered":"https:\/\/e-gmat.com\/blogs\/?p=35429"},"modified":"2022-02-02T18:26:48","modified_gmt":"2022-02-02T12:56:48","slug":"when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures","status":"publish","type":"post","link":"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/","title":{"rendered":"CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures&#8230;| GMAT CR OG Solution"},"content":{"rendered":"<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">A <\/span> <span class=\"rt-time\">5<\/span> <span class=\"rt-label rt-postfix\">min read <\/span><\/span>\n<p>In this article, we\u2019ll look at the solution to this Official Guide (OG) question CR56601.02 &#8211; &#8220;When new laws imposing strict penalties for misleading corporate disclosures\u2026&#8221; on critical reasoning: <\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts&#8217; predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts&#8217; predictions has not in fact decreased.<br><br>Which of the following would, if true, best explain the discrepancy outlined above? <\/p><p><em>[Refer to GMAT Official Guide for options]<\/em><\/p><p><\/p><\/blockquote>\n\n\n\n<p>Here is some general information about this OG question: <\/p>\n\n\n<div class=\"ub_styled_list \" id=\"ub_styled_list-9f5bad06-d346-4beb-85fc-f0d3efc1b8f3\"><ul class=\"fa-ul\"><li>PQID: CR56601.02<\/li><li>Difficulty Level: Hard<\/li><li>Most Common Incorrect option choice: Choice D and Choice C<\/li><li>Question Type: Paradox<\/li><\/ul><\/div>\n\n<div class=\"ub_table-of-contents\" data-showtext=\"show\" data-hidetext=\"hide\" data-scrolltype=\"auto\" id=\"ub_table-of-contents-9ecaffb6-810d-4986-ab13-eb4e2b0e4ca6\" data-initiallyhideonmobile=\"false\"\n                    data-initiallyshow=\"true\"><div class=\"ub_table-of-contents-header-container\"><div class=\"ub_table-of-contents-header\">\n                    <div class=\"ub_table-of-contents-title\">Here is the outline of the article:<\/div><div class=\"ub_table-of-contents-header-toggle\">\n                        <div class=\"ub_table-of-contents-toggle\">\n                        &nbsp;[<a class=\"ub_table-of-contents-toggle-link\" href=\"#\">hide<\/a>]<\/div><\/div><\/div><\/div><div class=\"ub_table-of-contents-extra-container\"><div class=\"ub_table-of-contents-container ub_table-of-contents-1-column \"><ul><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#0-og-video-solution-cr5660102-when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures%E2%80%A6-\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">OG Video Solution &#8211; CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures\u2026<\/a><\/li><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#1-og-solution-cr5660102-when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures%E2%80%A6-\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">OG Solution &#8211; CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures\u2026<\/a><\/li><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#7-misleading-corporate-disclosures-takeaways\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">Misleading Corporate Disclosures &#8211; Takeaways<\/a><\/li><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#8-practice-og-questions-\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">Practice OG questions<\/a><ul><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#9-og-question-1-suriland-cannot-both-export-wheat\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">OG Question 1 &#8211; Suriland cannot both export wheat&#8230;<\/a><\/li><li><a href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#10-og-question-2-in-a-certain-rural-area-people-normally-dispose\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener noreferrer\">OG Question 2 &#8211;  In a certain rural area, people normally dispose&#8230;<\/a><\/li><\/ul><\/li><\/ul><\/div><\/div><\/div>\n\n\n<h2 id=\"0-og-video-solution-cr5660102-when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures%E2%80%A6-\">OG Video Solution &#8211; CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures\u2026 <\/h2>\n\n\n\n<iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/ToFZUb1YPaM?rel=0\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe>\n\n\n\n<h2 id=\"1-og-solution-cr5660102-when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures%E2%80%A6-\">OG Solution &#8211; CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures\u2026  <\/h2>\n\n\n\n<p>Did you too select choice C or choice D for this question? Are you also wondering what went wrong? Well, you were close, but there are some aspects that you need to focus on. Let\u2019s see.<\/p>\n\n\n\n<p>Both choices C and D talk about factors that can have an impact, but do they actually have that impact? We will have to check.<\/p>\n\n\n\n<h3 id=\"2-choice-c-even-before-the-new-laws-were-passed-the-information-most-corporations-released-was-true\">Choice C- Even before the new laws were passed, the information most corporations released was true.<\/h3>\n\n\n\n<p>Probably you thought that <strong>if choice C is true, then the new laws have not made any difference, <\/strong>and hence you have a reason to think that number of inaccurate predictions will not go down.<\/p>\n\n\n\n<p><strong>If that was the case, then you faltered while analyzing the passage<\/strong>. The passage mentions that the amount and accuracy of information disclosed will increase under the new laws. Hence, even if most corporations were providing correct information earlier, the new laws would ensure more information and more accurate information.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"1200\" height=\"675\" src=\"https:\/\/cdn.e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/analyse-the-passage-carefully-misleading-corporate-disclosures.png\" alt=\"misleading corporate disclosures - GMAT OG solution \" class=\"wp-image-35455\" srcset=\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/analyse-the-passage-carefully-misleading-corporate-disclosures.png 1200w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/analyse-the-passage-carefully-misleading-corporate-disclosures-300x169.png 300w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/analyse-the-passage-carefully-misleading-corporate-disclosures-1024x576.png 1024w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/analyse-the-passage-carefully-misleading-corporate-disclosures-768x432.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p><strong>For example-<\/strong><\/p>\n\n\n\n<ul><li>Let\u2019s say there are 500 employees in a company and their average age is 40.<ul><li>Earlier, the company could have provided this information:<ul><li><em>We have at least 400 employees in our 8 departments.<\/em><\/li><\/ul><\/li><\/ul><ul><li>Under the new laws, the company\u2019s information may change to something like:<ul><li><em>We have more than 450 employees in our 8 departments, and their average age is more than 38.<\/em><\/li><\/ul><\/li><\/ul><\/li><\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>In this case, even though the company was providing correct information earlier, it was not as accurate as the one it provided later. Also, the new information also talks about the average age of employees, something that was not discussed earlier.<\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\">Hence, the new information should have definitely helped make the predictions more accurate.<\/span><\/p>\n\n\n\n<p>Therefore, this choice does not resolve the paradox.<\/p>\n\n\n\n<h3 id=\"3-choice-d-analysts-base-their-predictions-on-information-they-gather-from-many-sources-not-just-corporate-disclosures\">Choice D &#8211; Analysts base their predictions on information they gather from many sources, not just corporate disclosures.<\/h3>\n\n\n\n<p>If you selected choice D, then you had the assumption in mind <strong>that any of the other source\/sources could have reduced the accuracy of predictions because of which the number of inaccurate predictions has not gone down.<\/strong><\/p>\n\n\n\n<p>So now you know where you faltered! You selected an answer choice that is <strong>based on an assumption.<\/strong><\/p>\n\n\n\n<p>In other words, unless anything has been mentioned about other sources, <strong>we cannot assume that they compensated for the increased accuracy and more information.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"1200\" height=\"675\" src=\"https:\/\/cdn.e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/misleading-corporate-disclosure-solution-official-guide.png\" alt=\"GMAT OG Solution - When new laws imposing strict penalties for misleading corporate disclosures...\" class=\"wp-image-35456\" srcset=\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/misleading-corporate-disclosure-solution-official-guide.png 1200w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/misleading-corporate-disclosure-solution-official-guide-300x169.png 300w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/misleading-corporate-disclosure-solution-official-guide-1024x576.png 1024w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/misleading-corporate-disclosure-solution-official-guide-768x432.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>Without this assumption, the choice does not help resolve the paradox because if other sources continue to be as they were, the overall accuracy of predictions should have improved as a result of increased accuracy and more information.<\/p>\n\n\n\n<h3 id=\"4-correct-choice-e-the-more-pieces-of-information-corporations-release-the-more-difficult-it-becomes-for-anyone-to-organize-them-in-a-manageable-way\">Correct Choice E &#8211; The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.<\/h3>\n\n\n\n<p>This choice provides a reason why the number of inaccurate analysts\u2019 predictions did not go down- because even though they had access to an increased amount and accuracy of information, it was difficult to organize it.<\/p>\n\n\n\n<p>Hence, this choice resolves the paradox.<\/p>\n\n\n\n<p>Let\u2019s quickly review other choices.<\/p>\n\n\n\n<h3 id=\"5-choice-a-the-new-laws-definition-of-%E2%80%9Cmisleading-information%E2%80%9D-can-be-interpreted-in-more-than-one-way\">Choice A &#8211; The new laws&#8217; definition of \u201cmisleading information\u201d can be interpreted in more than one way.<\/h3>\n\n\n\n<p>We know that an additional benefit of the new laws was an increased amount and accuracy of information. So, whatever is the interpretation of \u201cmisleading information,\u201d analysts definitely had access to an increased amount and accuracy of information, and thus their predictions should have become more accurate.<\/p>\n\n\n\n<h3 id=\"6-choice-b-the-new-laws-require-corporations-in-all-industries-to-release-information-at-specific-times-of-the-year\">Choice B &#8211; The new laws require corporations in all industries to release information at specific times of the year.<\/h3>\n\n\n\n<p>As in choice A, irrespective of when the information is disclosed in the year, analysts had access to an increased amount and accuracy of information, and thus their predictions should have become more accurate.<\/p>\n\n\n\n<h2 id=\"7-misleading-corporate-disclosures-takeaways\">Misleading Corporate Disclosures &#8211; Takeaways<\/h2>\n\n\n\n<ol><li>Analyze the information given in the passage carefully. An answer choice may seem to be attractive but maybe going against the information given in the passage.<\/li><li>The correct answer choice will never be based on an assumption.<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/cdn.e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures-takeaways-1024x576.png\" alt=\"Misleading Corporate Disclosures - Takeaways\" class=\"wp-image-35457\" srcset=\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures-takeaways-1024x576.png 1024w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures-takeaways-300x169.png 300w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures-takeaways-768x432.png 768w, https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures-takeaways.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 id=\"8-practice-og-questions-\">Practice OG questions <\/h2>\n\n\n\n<p>Do try the following Weaken questions to learn more about correct weakeners:<\/p>\n\n\n\n<h3 id=\"9-og-question-1-suriland-cannot-both-export-wheat\">OG Question 1 &#8211; Suriland cannot both export wheat&#8230;<\/h3>\n\n\n\n<p>Suriland cannot both export wheat and keep bread plentiful and affordable in Suriland. Accordingly, Suriland&#8217;s wheat farmers are required to sell their crop to the government, which pays them a dollar per bushel less than the price on the world market. Therefore, if the farmers could sell their wheat on the world market, they would make a dollar per bushel more, less any additional transportation and brokerage costs they would have to pay.<\/p>\n\n\n\n<p>Which of the following, if true, most seriously weakens the argument?<\/p>\n\n\n<div class=\"ub-buttons align-button-center\"  id=\"ub-button-4c2c52db-8efb-4bb6-8f1a-1dfb9d50c95a\"><div class=\"ub-button-container\">\n    <a href=\"https:\/\/e-gmat.com\/blogs\/suriland-cannot-both-export-wheat\/\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"ub-button-block-main ub-button-small\" role=\"button\" data-wpel-link=\"internal\">\n    <div class=\"ub-button-content-holder\"><span class=\"ub-button-icon-holder\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\"height=\"25\", width=\"25\"viewBox=\"0, 0, 512, 512\"><path fill=\"currentColor\" d=\"M512 256c0-141.4-114.6-256-256-256S0 114.6 0 256c0 141.4 114.6 256 256 256S512 397.4 512 256zM265.9 382.8C259.9 380.3 256 374.5 256 368v-64H160c-17.67 0-32-14.33-32-32v-32c0-17.67 14.33-32 32-32h96v-64c0-6.469 3.891-12.31 9.875-14.78c5.984-2.484 12.86-1.109 17.44 3.469l112 112c6.248 6.248 6.248 16.38 0 22.62l-112 112C278.7 383.9 271.9 385.3 265.9 382.8z\"><\/svg><\/span><span class=\"ub-button-block-btn\">Solution &#8211; Suriland<\/span>\n    <\/div><\/a><\/div><\/div>\n\n\n<h3 id=\"10-og-question-2-in-a-certain-rural-area-people-normally-dispose\">OG Question 2 &#8211;  In a certain rural area, people normally dispose&#8230;<\/h3>\n\n\n\n<p>In a certain rural area, people normally dispose of household garbage by burning it. Burning household garbage releases toxic chemicals known as dioxins. New conservation regulations will require a major reduction in packaging\u2014specifically, paper and cardboard packaging\u2014for products sold in the area. Since such packaging materials contain dioxins, one result of the implementation of the new regulations will surely be a reduction in dioxin pollution in the area.<br><br>Which of the following, if true, most seriously weakens the argument?<\/p>\n\n\n<div class=\"ub-buttons align-button-center\"  id=\"ub-button-290abd35-e767-4b83-88f2-e877e0490fb8\"><div class=\"ub-button-container\">\n    <a href=\"https:\/\/e-gmat.com\/blogs\/in-a-certain-rural-area-people-normally-dispose\/\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"ub-button-block-main ub-button-small\" role=\"button\" data-wpel-link=\"internal\">\n    <div class=\"ub-button-content-holder\"><span class=\"ub-button-icon-holder\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\"height=\"25\", width=\"25\"viewBox=\"0, 0, 512, 512\"><path fill=\"currentColor\" d=\"M512 256c0-141.4-114.6-256-256-256S0 114.6 0 256c0 141.4 114.6 256 256 256S512 397.4 512 256zM265.9 382.8C259.9 380.3 256 374.5 256 368v-64H160c-17.67 0-32-14.33-32-32v-32c0-17.67 14.33-32 32-32h96v-64c0-6.469 3.891-12.31 9.875-14.78c5.984-2.484 12.86-1.109 17.44 3.469l112 112c6.248 6.248 6.248 16.38 0 22.62l-112 112C278.7 383.9 271.9 385.3 265.9 382.8z\"><\/svg><\/span><span class=\"ub-button-block-btn\">Solution &#8211; Dioxin <\/span>\n    <\/div><\/a><\/div><\/div>\n\n\n<p><br><\/p>\n\n\n\n<p>Happy learning!<br>Kanupriya<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>Planning to take the GMAT?<\/strong> We can give you access to quality online content to prepare. We are the<strong>&nbsp;most reviewed GMAT prep company on the GMAT club<\/strong> with <a href=\"https:\/\/gmatclub.com\/reviews\/e-gmat-6\" rel=\"nofollow external noopener noreferrer\" data-wpel-link=\"external\" target=\"_blank\">more than 2200+ reviews<\/a> and have delivered <strong>10x 700+ scores than the average GMATClub partner.<\/strong> Why don\u2019t you take a free trial&nbsp;and judge it for yourself?&nbsp;Write to us at&nbsp;acethegmat@e-gmat.com&nbsp;in case of any queries.<\/p>\n\n\n<div class=\"ub-buttons align-button-center\"  id=\"ub-button-217e8cc6-369e-47ba-bda6-106aa33b8d7e\"><div class=\"ub-button-container\">\n    <a href=\"https:\/\/resources.e-gmat.com\/free-resources\" target=\"_blank\" rel=\"noopener noreferrer external\" class=\"ub-button-block-main ub-button-medium\" role=\"button\" data-wpel-link=\"external\">\n    <div class=\"ub-button-content-holder\"><span class=\"ub-button-icon-holder\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\"height=\"30\", width=\"30\"viewBox=\"0, 0, 512, 512\"><path fill=\"currentColor\" d=\"M256 0C114.6 0 0 114.6 0 256c0 141.4 114.6 256 256 256s256-114.6 256-256C512 114.6 397.4 0 256 0zM406.6 278.6l-103.1 103.1c-12.5 12.5-32.75 12.5-45.25 0s-12.5-32.75 0-45.25L306.8 288H128C110.3 288 96 273.7 96 256s14.31-32 32-32h178.8l-49.38-49.38c-12.5-12.5-12.5-32.75 0-45.25s32.75-12.5 45.25 0l103.1 103.1C414.6 241.3 416 251.1 416 256C416 260.9 414.6 270.7 406.6 278.6z\"><\/svg><\/span><span class=\"ub-button-block-btn\">Get free prep resources<\/span>\n    <\/div><\/a><\/div><div class=\"ub-button-container\">\n    <a href=\"https:\/\/resources.e-gmat.com\/mock-free\" target=\"_blank\" rel=\"noopener noreferrer external\" class=\"ub-button-block-main ub-button-medium\" role=\"button\" data-wpel-link=\"external\">\n    <div class=\"ub-button-content-holder\"><span class=\"ub-button-icon-holder\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\"height=\"30\", width=\"30\"viewBox=\"0, 0, 448, 512\"><path fill=\"currentColor\" d=\"M246.6 233.4l-160-160c-12.5-12.5-32.75-12.5-45.25 0s-12.5 32.75 0 45.25L178.8 256l-137.4 137.4c-12.5 12.5-12.5 32.75 0 45.25C47.63 444.9 55.81 448 64 448s16.38-3.125 22.62-9.375l160-160C259.1 266.1 259.1 245.9 246.6 233.4zM438.6 233.4l-160-160c-12.5-12.5-32.75-12.5-45.25 0s-12.5 32.75 0 45.25L370.8 256l-137.4 137.4c-12.5 12.5-12.5 32.75 0 45.25C239.6 444.9 247.8 448 256 448s16.38-3.125 22.62-9.375l160-160C451.1 266.1 451.1 245.9 438.6 233.4z\"><\/svg><\/span><span class=\"ub-button-block-btn\">Take a free mock<\/span>\n    <\/div><\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>In this article, we\u2019ll look at the solution to this Official Guide (OG) question CR56601.02 &#8211; &#8220;When new laws imposing strict penalties for misleading corporate disclosures\u2026&#8221; on critical reasoning: CR56601.02 &#8211; When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an [&hellip;]<\/p>\n","protected":false},"author":102416,"featured_media":35443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ub_ctt_via":""},"categories":[21,44,94],"tags":[],"featured_image_src":"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures.png","author_info":{"display_name":"Kanupriya S","author_link":"https:\/\/e-gmat.com\/blogs\/author\/kanupriya-s\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.1.1 (Yoast SEO v17.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CR56601.02 - When new laws imposing strict penalties for misleading corporate disclosures...| GMAT CR OG Solution<\/title>\n<meta name=\"description\" content=\"Here is the text and video solution to this OG question - When new laws imposing strict penalties for misleading corporate disclosures...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CR56601.02 - When new laws imposing strict penalties for misleading corporate disclosures...| GMAT CR OG Solution\" \/>\n<meta property=\"og:description\" content=\"Here is the text and video solution to this OG question - When new laws imposing strict penalties for misleading corporate disclosures...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/\" \/>\n<meta property=\"og:site_name\" content=\"e-GMAT Blog | Best GMAT blog on the planet\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/E-Gmat-499275643430980\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-15T12:31:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-02T12:56:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@e_GMAT\" \/>\n<meta name=\"twitter:site\" content=\"@e_GMAT\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kanupriya S\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/e-gmat.com\/blogs\/#organization\",\"name\":\"e-GMAT\",\"url\":\"https:\/\/e-gmat.com\/blogs\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/E-Gmat-499275643430980\",\"https:\/\/www.linkedin.com\/in\/rajat-sadana-ba459a\/\",\"https:\/\/www.youtube.com\/user\/eGMATconcepts\",\"https:\/\/twitter.com\/e_GMAT\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/e-gmat.com\/blogs\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2018\/04\/logo-full.png\",\"contentUrl\":\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2018\/04\/logo-full.png\",\"width\":908,\"height\":802,\"caption\":\"e-GMAT\"},\"image\":{\"@id\":\"https:\/\/e-gmat.com\/blogs\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/e-gmat.com\/blogs\/#website\",\"url\":\"https:\/\/e-gmat.com\/blogs\/\",\"name\":\"e-GMAT Blog | Best GMAT blog on the planet\",\"description\":\"Prepare for your GMAT and MBA journey\",\"publisher\":{\"@id\":\"https:\/\/e-gmat.com\/blogs\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/e-gmat.com\/blogs\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/e-gmat.com\/blogs\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures.png\",\"contentUrl\":\"https:\/\/e-gmat.com\/blogs\/wp-content\/uploads\/2021\/12\/when-new-laws-imposing-strict-penalties-for-misleading-corporate-disclosures.png\",\"width\":1200,\"height\":675,\"caption\":\"GMAT OG question - 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